Saturday, February 4, 2012

Hopeful Signs for Reforestation in Africa

Nedbank Capital, a South African bank, and Netherlands-based Face the Future, a forest carbon offset project developer, have signed a memorandum of understanding (MOU) intended to facilitate joint sustainable forestry projects in Africa. The agreement stems from an earlier collaboration between the two parties on a reforestation project in Uganda's Kibale National Park, which is managed by Face the Future along with the Uganda Wildlife Authority. Last year, Nedbank purchased 50,000 carbon credits generated by the Kibale project. With an MOU now in place, Nedbank and Face the Future envision future projects in East Africa including Uganda as well as Kenya and Tanzania. Such otherwise hopeful prospects may be blunted, however, by the EU's continuing prohibition on the use of A/R credits, and possibly by upcoming ETS Phase III restrictions on credits originating outside of least developed countries (LDCs).